Mike McGuire
- Democratic
- Senator
- District 2
Author
The Personal Income Tax Law, in modified conformity with federal law, generally imposes a tax on the income of residents in the state, as specified, and allows various credits against the taxes imposed by that law. The Personal Income Tax Law also imposes an annual tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified, in an amount equal to the minimum franchise tax. The Corporation Tax Law imposes an annual tax on "S" corporations at a rate of 1.5% of its net income, or if greater, the minimum franchise tax, as specified. Existing law requires any bill introduced on or after January 1, 2020, authorizing certain tax expenditures, as defined, to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would authorize a partnership or "S" corporation that meets certain other requirements to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The bill would authorize the Franchise Tax Board to adopt regulations to implement the elective tax and exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would allow a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the bill, in an amount equal to a specified percentage of the partner's, shareholder's, or member's pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The bill would also provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
Returned to Secretary of Senate pursuant to Joint Rule 56.
May 20 hearing: Held in committee and under submission.
Set for hearing May 20.
April 19 hearing: Placed on APPR suspense file.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
Set for hearing April 19.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 632.) (March 25).
Set for hearing March 25.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.
Read first time.
From printer. May be acted upon on or after February 5.
Introduced. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB104 | HTML |
| 01/05/21 - Introduced | |
| 03/09/21 - Amended Senate | |
| 04/05/21 - Amended Senate | |
| 04/12/21 - Amended Senate |
| Document | Format |
|---|---|
| 03/22/21- Senate Governance and Finance | |
| 04/16/21- Senate Appropriations |
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